On March 30, 2021, a Russian national and his engineering company pled guilty to conspiracy to evade U.S. export regulations and to defraud the United States for their actions in attempting to procure a power turbine for a deepwater drilling platform in the Russian Arctic without first obtaining a license from the Department of Commerce. The Russian parties sourced the turbine from a U.S.-based manufacturer for approximately $17.3 million, and they conspired to conceal the true end user of the turbine from both the U.S. manufacturer and the U.S. government by submitting false documentation that stated it would be used by a U.S. company in and around Atlanta. Several individuals were arrested in Georgia while attempting to complete the illegal transaction. This case demonstrates the lengths that bad actors will take to evade U.S. trade sanctions.
For more information on how these could impact your business, contact:
- Martin Lutz, Partner (email@example.com, 512-495-6024),
- Jamie Joiner, Special Counsel (firstname.lastname@example.org, 713-615-8530),
- Lindsey Roskopf, Partner (email@example.com, 713-615-8534),
- Justin Cawley, Senior Counsel (firstname.lastname@example.org, 202-812-2644), or
- Another member of the McGinnis Lochridge International Trade and Transactions Practice Group